U.S. stock markets surged to new record highs following an unexpected contraction in the July employment report. Nonfarm payrolls shockingly fell by 23,000 jobs, defying Wall Street expectations of an 80,000-job gain. Paradoxically, investors cheered the weak labor data.
The contraction significantly lowers the pressure on the Federal Reserve to aggressively hike interest rates later this year. The S&P 500 jumped 0.6% to a record close of 7,757.64, while the tech-heavy Nasdaq composite led the charge with a 1.3% gain. Meanwhile, the 10-year Treasury yield slid down to 4.64% as bond markets reacted to the shifting economic landscape.
- S&P 500 performance: Advanced 3.6% for the week.
- Nasdaq composite: Gained 5.2% over the same five-day stretch.
- Unemployment rate: Edged slightly down to 4.1%.
Read the full analysis of the market reaction on CNBC.
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